Consumer Edge Data Reveals Value Brands Gain Ground as Apparel Demand Softens Heading Into 2026

Income Alone No Longer Predicts Apparel Spending as Shoppers Weigh Value and Relevance

Findings to be Presented at NRF 2026: Retail's Big Show

NEW YORK, Jan. 6, 2026 /PRNewswire/ -- Consumer Edge ("CE" or the "Company"), the leading provider of global consumer data-driven insights, today released new findings from its 2026 Apparel, Accessories and Footwear Outlook Report, showing that U.S. consumer spending in the category declined modestly in 2025 (through November 30) and underperformed overall consumer spending. Despite the pullback, value-driven brands continued to gain share, even among higher-income shoppers, a sign that income alone no longer reliably predicts how people shop for apparel heading into 2026.

Within this shifting landscape, CE's analysis of the top 40 fastest-growing apparel, department store and luxury brands by direct-to-consumer sales in 2025 shows Miu Miu, Quince, Alo Yoga, Depop and Longchamp ranked among the fastest-growing DTC players, gaining ground despite broader softness in apparel spending.

High-income shoppers are becoming more selective, pairing indulgence with smarter day-to-day spending. Many split their apparel purchases between quality essentials, trend-driven brands and off-price retailers. Within this high-income cohort, brands including Quince, Depop, Alo Yoga and Nordstrom Rack gained market share.

Notably, younger Gen Z shoppers (ages 18 to 24) reduced their spending less than any other age group, favoring brands such as Coach, Depop, Béis and SHEIN, reflecting demand for culturally relevant, trend-driven brands that balance affordability with aspiration.

Additional insights from the report include:

• Millennial shoppers shifted their spending toward practical, value-led brands: Spending pullbacks were sharper among 25- to 34-year-olds, but brands including Quince, Uniqlo, Buck Mason and Depop gained traction as shoppers prioritized versatility, quality and value.
• Resale and off-price continue to outperform: Consignment and thrift spending grew year-over-year, with Depop, Poshmark and The RealReal leading the charge. At the same time, off-price department stores, including T.J. Maxx, Ross and Nordstrom Rack continued to outperform traditional department stores.
• Footwear and athletic apparel remain under pressure: Spending in the category remained soft, with larger, established players continuing to lose momentum while newer and more trend-driven brands captured incremental share.
• Luxury spending diverges across brands: Cartier stood out as one of the few single-brand luxury houses to gain share, while Gucci and Louis Vuitton continued to lose wallet share. Within the multi-brand luxury category, Mytheresa and Net-a-Porter gained share, while SSENSE declined amid its ongoing restructuring following a bankruptcy protection filing.

"What's striking is that income alone is no longer a reliable predictor of apparel spending behavior," said Michael Gunther, Vice President and Head of Insights, at Consumer Edge. "Even higher-income consumers are becoming more selective, shifting spend toward brands that offer a clear value proposition – whether that's quality, pricing, relevance or brand affinity. As we enter 2026, brands with a clearly defined customer and brand message will have an advantage over those taking a broad, one-size-fits-all approach."

CE's full 2026 Apparel, Accessories and Footwear Outlook Report can be found here. Michael Gunther will present these findings at NRF 2026: Retail's Big Show on Tuesday, January 13, at 11:30 a.m. ET on the Exhibitor Big Ideas Stage 1. CE will be exhibiting at Booth 4148.

About Consumer Edge
Consumer Edge ("CE") is a leading data and insights-as-a-service (IaaS) company specializing in the global consumer, B2B, and healthcare economies. Founded in 2009 by CEO Bill Pecoriello, CE delivers real-time, transaction-based intelligence enriched by deep industry expertise. Its solutions equip corporate and investment leaders with best-in-class tools for strategic decision-making, offering granular insights and benchmarking across products, brands, sub-industries, and industries. CE's unique capabilities turn complex data into clear, actionable insights that drive smarter, faster decisions.

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SOURCE Consumer Edge